People's Republic of China – Bank of China 1979 10 Fen / 0.10 Yuan Foreign Exchange Certificate (FEC)

• Issuing Authority: Bank of China (中国银行 – Zhongguo Yinhang)

• Denomination: 0.10 Yuan / 壹角 (1 Jiao) / TEN FEN (10 Fen = 1 Jiao = 0.10 Yuan)

• Type: Foreign Exchange Certificate (FEC / 外汇兑换券 – Waihui Duihuanquan)

• Series Date Marked: 1979 (一九七九年)

• Catalog Reference: Pick # FX1 (Standard Catalog of World Paper Money – Special Issues)

• Serial Number: YE 055317 (6 digits with two-letter prefix YE)

• Vignette (Face): The majestic Huangguoshu Waterfall (黄果树瀑布) in Guizhou Province, one of the largest waterfalls in China and East Asia.

• Dimensions: Approx. 120 × 52 mm

• Color Palette: Rich chocolate brown, sepia, and olive-green on cream banknote paper.

Restrictive Reverse Clause

The reverse features bilingual text in Chinese and English outlining strict currency controls:

"The yuan expressed in this certificate is equivalent in value to the Renminbi yuan. This certificate can only be used within China at designated places. No request to register its loss will be accepted by the Bank."

Historical Context: The Dual-Currency Era

• Deng Xiaoping’s Open Door Policy (1979): When China began opening to foreign tourism and international commerce in the late 1970s, the government instituted a strict two-tier monetary system to prevent foreign currencies from circulating directly and to control hard foreign exchange.

• The Role of FECs: Foreign travelers, diplomats, and business visitors had to convert their foreign currencies (USD, British pounds, Hong Kong dollars) into Foreign Exchange Certificates (FEC) issued by the Bank of China. Regular Chinese citizens used domestic Renminbi (RMB).

• Friendship Stores & Luxury Goods: FECs were the only legal tender accepted in state-run "Friendship Stores" (Youyi Shangdian), upscale hotels, international airports, and duty-free ports to purchase imported luxury goods, electronics, and high-end silk that standard RMB could not buy.

• A Lucrative Black Market: Because FEC notes granted access to coveted foreign goods, a massive street-level black market emerged where locals offered substantial premiums (often 30% to 50% above face value) in domestic RMB to obtain FECs from foreign travelers.

• Demonetization (1994–1995): On January 1, 1994, China unified its foreign exchange system, phasing out FECs entirely and officially retiring them on June 30, 1995.

Technical & Visual Assessment

• Technical Grade: Choice Crisp Uncirculated (CU 63 – CU 64)

• Substrate & Surface Preservation:

  • Clean, factory-fresh paper body showing zero folds, handling bends, or ripples.

  • Crisp 90-degree square corners with no rounding or blunting.

  • Clean, bright white margins with no pinholes, staple marks, pencil graffiti, or edge toning.

• Centering: Well-balanced margin framing on both the face and reverse.